Tax fraud is a serious problem, and unfortunately, it’s on
the rise. In recent years, there has been an increase in criminals using stolen
personal information to file fraudulent tax returns and then to
You might think this could never happen to you, but the
truth is, cyber thieves are always coming up with new ways to steal your
information and to use it to their own devious benefit. Fortunately, there are
many things you can do to reduce your risk of being a victim of tax fraud, such
as:
l Keeping
high quality, up-to-date anti-virus software on your computer
l If
filing online, only filing from a secure connection, i.e. not via public WiFi
l Never
filing from or responding to emails supposedly from the IRS, which doesn’t send
emails
l Sending
mailed returns from the post office directly, where they are less likely to be
subjected to interference
l Storing
personal data in a secure location
l Not
carrying your social security card in your wallet, in case it gets stolen
l Regularly
checking your bank account and credit card statements and reporting or
inquiring about suspicious activity
Take Action Immediately
If you do fall victim to a fraudulent return or even if you
merely think this may be the case, act immediately! Let your bank, your credit card
issuer, and others know so that new accounts can be opened and so that the
thief can’t continue to use your information.
Also be sure to contact the IRS and let them know what is
going on so that you can file a new return and undo any damage done to your
credit. In fact, it is also worthwhile to contact credit reporting agencies,
including Experian, TransUnion, and Equifax. You can also access your credit
report for free from these agencies and request that information related to the
fraud be removed.
Request an Identity Protection PIN
Once you’ve been the victim of
fraud, the last thing you’ll want is for it to happen again. That’s why it’s
wise to file for an identity protection PIN from the IRS. This number, issued
by the IRS, can be used to securely file future returns, putting an additional
safety net between you and potential fraud. This is a very necessary step
because, unfortunately, if you’ve been victimized once, it’s likely to happen
again since your information is out there and accessible.
Move On
Finally, remember that you can’t
live in fear forever. It’s normal to feel scared and frustrated after something
like this happens to you. But, as long as you take the appropriate steps, you
can limit your risk of having fraud affect you in the future, learn from the
experience, and move on, all the wiser for what you’ve been through.
Unfortunately, though, even if you follow all of these tips to a tee, there is no absolute guarantee you won’t be a victim of a fraudulent return. That’s why, in addition to these measures, you should also be aware of what to do if this does happen to you.